Breaching of 32 technology patents had led to Nokia suing Apple last December, which covered issues regarding the use of patent technology of Nokia including display, user interface, and video encoding. Even before this, the companies had been involved in legal battles relating to patent technology between 2009 and 2011, reported BBC.
But now, the two companies have agreed to settle their dispute and work together for a few future projects. The deal between the companies has led to Apple using Nokia's technology in return of deserved cash payment. Apple will now be able to stock health products being produced by Nokia in their retail stores, under the agreement.
No financial detail has been disclosed by either company, while market experts have speculated a deal worth millions of dollars.
Both the companies have shown solidarity with each other over the matter with Nokia's Chief Legal Officer Maria Varsellona saying that the agreement "moves our relationship with Apple from being adversaries in court to business partners It moves our relationship with Apple from being adversaries in court to business partners working for the benefit of our customers", while Apple's Jeff Williams said they are "pleased with this resolution of our dispute".
To continue their "network infrastructure" products, the companies have also decided to organise summits on a regular basis and continue the cooperation.
Varsellona also added, "This is a meaningful agreement between Nokia and Apple."
While the agreement has benefited Apple with the legal use of patent technology, Nokia experienced the highest share price level in three years after the news of agreement broke out. The company's shares rose around 8%. Even Apple experienced 0.61% higher share price on Tuesday.